What's the difference between a "captive" and an "independent" insurance agent?

What's the difference between a "captive" and an "independent" insurance agent?

Sam Friedman (Editor-in-Chief, National Underwriter, Property & Casualty Edition) gives expert video advice on: Do I need insurance?; How much insurance do I need? and more...

Well it's pretty simple. A "captive" is exactly what it sounds like. They are a captive of the insurance company they work for; they represent solely that one company. So, and it's very easy to pick out these types of agents. If you're walking down your main street wherever you happen to live, if you see the name of the insurance company on the storefront, whether it's Statefarm, Allstate, Prudential, MetLife you will see the, that you know is a captive agent, that is a representative of that company. If, on the other hand, you're walking down the street and you see the John Smith Insurance Agency you know that this individual is an independent agent, he's free to do business with whatever carriers he signs on with, and by definition they're going to have a stable of carriers that can meet a number of your needs, as opposed to just offering you, you know, the offerings of one company, and that's the big difference dealing with an independent agent.